As a part of its new strategy for digital commerce, Kishore Biyani’s Future Group is now planning to offer micro-insurance to its customers. Interestingly, micro-insurance is becoming a huge market in India, with many players like Ola and Paytm already grabbing their share of the market. Future Pay, an offering launched by Future Group last year, already has over 10 million users. This is a great base to which they can now begin offering micro-insurance too.
Vivek Biyani, who heads the digital businesses for Future Group and is also a board member, spoke about this by saying “ We want to do micro-insurance through the data we have about our customers. We are building a front-end distribution company, which will distribute the products Future Generali makes,”
Future Group already has a strong database of users and their data, which can prove to be extremely useful for selling micro-insurance policies and processing claims. In fact, the availability of such data is what helped insurance startups like Cover Fox and Go Digit step up their game.
Talking about this availability of customer data, Mr. Biyani said “We are using data to build businesses on top of it,” He also said, “We want to use data to make hyper-personalized sales.”
Future Group is a retail giant in India and may just end up carving out a separate FinTech company altogether in order to offer products like micro-insurance, payments, and lendings. Spokespersons have not talked about how they plan to go about setting up the operations for the same, so there is no clarity on whether this new business will exist as a separate entity or not.